Bermuda and London-based insurer Lancashire Holdings Limited has estimated that the “net impact on its fourth quarter financial results from Sandy is likely to be in a range of between $40 million and $60 million.”
As other companies have indicated, Lancashire said the “loss estimate has been derived from a combination of market data and assumptions, provisional loss advices, limited client loss data and modeled loss projections.
“The estimate accounts for potential reinsurance recoveries and reinstatement premiums, but does not presently include any benefit from industry loss warranties that the Company has in place.” lancashire explained that it has “$40 million of industry loss warranty cover, attaching at an insured market loss of $20 billion as reported by Property Claims Services.
“This initial estimate involves the exercise of considerable judgment. Given the limited and preliminary nature of the data available, there is substantial uncertainty associated with the loss estimate, which therefore may be subject to revision. Claims remain subject to adjustment. As additional information emerges, the Company’s actual ultimate loss may vary, perhaps materially, from today’s estimate.”
Bermuda-based Maiden Holdings, Ltd. announced its initial loss estimate from Superstorm Sandy to be in the range of between $25 million and $35 million. The bulletin said the estimates are “based on a comprehensive analysis of the Company’s exposure in the affected area, as well as loss reports and estimates from clients.” The estimate is also “net of applicable reinsurance and the Company’s quarterly provision for normalized catastrophe losses.”
Maiden explained that its “exposure to this event emanates predominantly from the Company’s E&S property insurance business, Maiden Specialty, and to a lesser extent from the U.S. assumed treaty reinsurance business. Maiden remains strongly capitalized and well positioned to continue to profitably support the needs of regional and specialty insurers.”
Sources: Lancashire Holdings and Maiden Holdings
Topics Profit Loss
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